What’s fair? Is it fair that Mike Duke, Walmart CEO, makes nearly 1,034 times as much as a median employee of the corporate giant?
Based on statistics from PayScale, last year Duke made $23.15 million while half of the company’s workers earned less than $22,400 in 2012. According to the U.S. Department of Health and Human Services, in 2012 a family of four earning less than $23,050 was considered below the poverty line.
Randy Hargrove, a Walmart spokesman, said that PayScale’s data was “inflated” in a statement to The Huffington Post on Friday.
“His [Duke’s] fiscal 2012 base salary of $1.26 million is less than 7 percent of his total compensation and he will only earn a significant majority of his overall compensation package if the company meets performance goals aligned with shareholder value and our key financial priorities – growth, leverage and returns … The fact is we offer unprecedented opportunity for associate advancement and we give our associates the chance to share in the company’s success.”
Here’s an infographic courtesy of PayScale that demonstrates the ratio of pay between the Walmart CEO and his workers, and some of America’s other well-known corporations:
So what’s the right balance of pay between a company’s CEO and its other employees? Is Walmart’s current CEO earning too much?